BENGALURU, India, Jan. 9, 2025
/PRNewswire/ -- Zoomcar Holdings, Inc. (NASDAQ: ZCAR)
("Zoomcar", or "we", or "our"), the leading marketplace for car
sharing in India, proudly
announces a milestone achievement in its financial performance in
select unaudited and unreviewed financial results for the third
fiscal quarter ended December 31,
2024. The company recorded its highest-ever unaudited and
unreviewed contribution profit for the single month in December 2024, amounting to $494,506 based on provisional financials for the
month, sufficient to cover its operational costs in India (excluding exceptional items). Zoomcar
currently only operates in India
and does not incur operational costs in any other country. This
accomplishment underscores Zoomcar's commitment to operational
excellence and sustainable growth.
December 2024 marked a significant
growth in consumer demand, leading to a 17% growth in bookings
compared to December 2023. This surge
in activity highlights the growing appeal of Zoomcar's platform
among Hosts and Guests, as well as the increasing adoption of
car-sharing solutions across India.
Zoomcar's financial turnaround has been remarkable over the past
year. Key highlights include:
- In the first fiscal quarter 2024-25 report, Zoomcar reported a
contribution profit of $0.46 million
(20%), a substantial improvement in contribution margin from a loss
of $1.2 million (-45%) in the first fiscal quarter 2023-24.
- Similarly, Zoomcar shared a record quarterly contribution
profit of $1.21 million (54% of
revenue) in the second fiscal
quarter 2024-25, up from a loss of $0.12
million (-5%) in the second
fiscal quarter 2023-24.
- December 2024's unaudited and unreviewed monthly contribution
profit continues this positive trajectory, following a streak of
four consecutive quarters of contribution profit improvement filed
by the company.
Hiroshi Nishijima, Interim CEO of Zoomcar, commented, "By
achieving a record contribution profit (unaudited and unreviewed)
in December 2024 which is our peak
seasonal demand month and covering operational costs reflects that
our business fundamentals are right on track by putting the
customer experience at the center of our strategy. This focus
drives repeat bookings from Guests and strengthens Host retention,
all while minimizing our spend on discounts and marketing—an
organic flywheel of growth. With improved profitability, we are
committed to reinvesting in enhancing the customer journey and
launching innovative products that add value to our community."
As Zoomcar heads into 2025, the company remains dedicated to
advancing its mission of empowering Hosts, offering affordable and
convenient transportation for Guests, and driving financial
sustainability. The continuous trend of improving contribution
profits not only signals progress but also sets a strong foundation
for the future.
Financial Disclosure Advisory:
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles ("GAAP"). The select
unaudited and unreviewed results described in this press release
are estimates only and are subject to revision until the Company
reports its full financial and business results for the third
quarter of the fiscal year 2024-2025. These estimates are not a
comprehensive statement of the Company's financial results for the
third quarter of the fiscal year 2024-2025 and actual results may
differ materially from these estimates as a result of the
completion of year-end accounting procedures and adjustments,
including the execution of the Company's internal control over
financial reporting, the completion of the preparation and audit of
the Company's financial statements and the subsequent occurrence or
identification of events prior to the formal issuance of the
reviewed financial statements for the third quarter of the fiscal
year 2024-2025.
Non-GAAP Financial Measures:
Certain non-GAAP financial measures, including contribution
profit, are presented in this press release to provide information
that may assist investors in understanding the Company's financial
and operating results. The Company believes these non-GAAP
financial measures are important performance indicators because
they exclude items that are unrelated to, and may not be indicative
of, the Company's core financial and operating results. These
non-GAAP financial measures, as calculated, may not necessarily be
comparable to similarly titled measures of other companies and may
not be appropriate measures for comparing the performance of other
companies relative to the Company. These non-GAAP financial
measures are not intended to represent, and should not be
considered to be more meaningful measures than, or alternatives to,
measures of operating performance as determined in accordance with
GAAP. To the extent the Company utilizes such non-GAAP financial
measures in the future, it expects to calculate them using a
consistent method from period to period.
About Zoomcar:
Founded in 2013 and headquartered in Bengaluru, India, Zoomcar is a leading marketplace for
car sharing focused in India. The
Zoomcar community connects Hosts with Guests, who choose from a
selection of cars for use at affordable prices, promoting
sustainable, smart transportation solutions in India.
Forward Looking Statement:
Certain statements contained in this press release are not
historical facts and may be forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "plans," "expects," "believes," "anticipates," and
similar words are intended to identify forward-looking statements.
These forward-looking statements include, but are not limited to,
statements relating to the Company's preliminary, unaudited
financial results for the third quarter of the fiscal year
2024-2025, the Company's progress against its strategic objectives,
and the plans for and timing of the Company's the Company's release
of its financial and business results for the third quarter of the
fiscal year 2024-2025. Forward-looking statements are based on our
current expectations and beliefs, and involve a number of risks and
uncertainties that are difficult to predict and that could cause
actual results to differ materially from those stated or implied by
the forward-looking statements. A description of certain of these
risks, uncertainties and other matters can be found in filings we
make with the U.S. Securities and Exchange Commission, all of which
are available at www.sec.gov. Because forward-looking statements
involve risks and uncertainties, actual results and events may
differ materially from results and events currently expected by us,
readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update these forward-looking
statements to reflect events or circumstances that occur after the
date hereof or to reflect any change in its expectations with
regard to these forward-looking statements or the occurrence of
unanticipated events.
Press Contact:
Bhagyashree Rewatkar:
bhagyashree.rewatkar@zoomcar.com
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SOURCE Zoomcar Holdings, Inc.
